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Do borrowers need to sign the HUD-1?
Question: Most of the HUD-1 forms that we see have signature lines. Is it a requirement to have the borrowers sign the HUD-1? What about the sellers?
Answer: There is no signature requirement for the HUD-1 or HUD-1A settlement sheets. Many lenders have customers sign because it proves delivery and acceptance. This is a "nice to do" rather than a "must do." Because we see signatures on the HUD-1 so often, it is easy to think it is a requirement. But if you look at the instructions, there is no such requirement.
HUD's model HUD-1 does not have a signature line. The model for the HUD-1A does show a signature line. Conclusion? HUD probably thinks that signatures are nice, but didn't go so far as to require them.
The same is true for the Good Faith Estimate. There is no signature requirement. In the case of the GFE, however, the model form shows a signature line. However, without a clear statement that a signature is required, the presence of the line in the model form is merely a "nice to do" rather than a requirement.
Copyright © 2003 Compliance Action. Originally appeared in Compliance Action, Vol. 8, No. 2, 3/03
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